Redundancies are a fact of contemporary employment. This has been exacerbated by the economic impact of Covid-19 across many industries.
The fact that redundancies occur or are anticipated regularly within a workplace can be extremely challenging for the employer, the directly affected employees, and the rest of the workforce.
If poorly implemented a redundancy can result in long-term damage to your employer brand and create ongoing trust issues for remaining employees.
The benefits of Outplacement support
Whether you are delivering or receiving the news of redundancy, having support throughout the process is a worthwhile investment. Outplacement support can provide your business and employees with the tools required to minimise the risks associated with major workforce change. Without a doubt getting the right communication and support will mitigate risks such as unfair dismissal claims, and damage to the employer brand.
A redundancy process implemented poorly can impact the trust and loyalty of remaining employees within the organisation, which can lead to low morale, poor employee wellbeing and ultimately, reduce productivity and profitability. Research conducted by LinkedIn has found that ‘concerns about job security is the most negative influencing factor when it comes to factors impacting employer brand. Followed by the negative influencing factors of ‘dysfunctional teams’ and ‘poor leadership’.
The LinkedIn study found that half of those surveyed would entirely rule out taking a job with a company that exhibited the three negative employer brand factors, no matter the pay offered. In a tight labour market, no employer needs to be narrowing their potential employee pool by damaging their reputation.
It is understandable why redundancies can cause such damage to brand reputation. We spend half of our waking days in our workplaces. We build strong relationships, we have fun with our colleagues, we interact with internal and external stakeholders, we invest ourselves in our jobs and we expect to grow and further our careers. Redundancies bring all of this to a sudden end. It can be brutal and confusing.
How Outplacement services can support your business
Outplacement services provide employees experiencing a redundancy with both practical guidance and emotional support. This practical guidance will give employees the best chance of finding new work sooner with the emotional support that will allow them to focus on the future. Having access to an Outplacement service helps people funnel their emotions towards a more positive outlook which enhances their prospects in the job market and minimise the negative personal impact of job loss.
Employees who are offered outplacement services statistically resettle 50% faster than those who do not have the benefit of outplacement services. By offering outplacement, you show remaining employees that even if the worst happens, you still have their backs.
Employers who offer Outplacement services are more highly regarded by their remaining employees, as they are able to see that their former co-workers are looked after. It assists preventing litigation, reducing the distrust of remaining employees, and minimising the burden for management, knowing that their former employees will be provided with professional assistance throughout their career transition. It is an investment in the future of both the well-being of employees and the attractiveness of the company to future employees through maintaining your employer brand.
If you would like more information on our Outplacement services or how we can assist your business in the future, please contact your usual Mazars advisor or our HR Consulting division at firstname.lastname@example.org, 07 3218 3919 or via the form below:
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